Klarna, Europe’s highest valued fintech startup, raises $650M funding round at $10.6 billion valuation

The last time we wrote about Klarna was back in February when the Swedish unicorn startup reported its first annual loss after many years of profitability. Klarna, which provides e-commerce payment solutions for merchants and shoppers, reported a loss of 1.1 billion Swedish krona ($113 million) on revenues of 7.2 billion krona from January to December 2019.

Now, it seems the Snoop Dogg-backed startup is back on track. Today, the Swedish online payments startup announced it has raised $650 million in an equity funding round, valuing the company at $10.6 billion and officially making Klarna Europe’s highest valued private fintech company and the 4th highest worldwide.

The round was led by Silver Lake, with participation from GIC – Singapore’s sovereign wealth fund – as well as funds and accounts managed by BlackRock and HMI Capital. Klarna said it will use the fresh capital infusion to further invest in its unique shopping offering, continue to grow its global presence, and accelerate its strong momentum across all markets, especially in the US where the company is growing particularly rapidly and now has more than 9 million consumers.

Klarna was founded in 2005 in Stockholm, Sweden with the aim of making it easier for people to shop online. In the last 12 years, technology has evolved, excited, and transformed the world around us, yet their mission remains as relevant as ever, to make paying as simple, safe, and above all, smooth as possible.

Klarna’s direct to consumer app, which enables users to shop at any store or brand online with installment payment options, is strongly resonating as consumers have become more focused on convenience, value, and control. The app has more than 12 million monthly active users worldwide, with 55,000 daily downloads, significantly outpacing its nearest competitor with almost 3x as many downloads over the last year.

Commenting on the funding, Sebastian Siemiatkowski, co-founder and CEO of Klarna: “We are at a true inflection point in both retail and finance. The shift to online retail is now truly supercharged and there is a very tangible change in the behavior of consumers who are now actively seeking services that offer convenience, flexibility, and control in how they pay and overall superior shopping experience. Klarna’s unique proposition, consumer preference, and global retailer network will prove an excellent platform for further growth. The Klarna team is honored to welcome such world-class investors to support our mission to become the world’s favorite way to shop.”